WE revenues hit EGP 17.4 bn in nine months

CAIRO - 15 November 2018: Telecom Egypt (WE) revenues hit EGP 17.4 billion from January to September 2018, at a 32 percent uptick in comparison with the same period last year.

In a statement on Thursday, the company said the number of mobile phone subscribers upped 3.6 million, at a 300,000 rise.

The number of fixed line subscribers increased by 10 percent, the statement said.

Earnings before interest, tax, depreciation and amortization (EBITDA) ramped up to EGP 5.3 billion at a 36 percent rise in comparison with the same period last year.

The Profit After Tax (PAT) recorded EGP 3.5 billion, while cash flows from operating activities upped by 37 percent in comparison with the corresponding period last year, the statement said.

The company attributed this rise in revenues to growing internet services by 45 percent in addition to a deal signed with India's Bharti Airtel “Airtel” in October.

The agreement grants Airtel IRUs (Indefeasible Right of Use) on Middle East North Africa Submarine Cable “MENA Cable” and TE North Cable Systems. Additionally, Airtel will take large capacities on a long-term basis on two new cable systems (SMW5 & AAE1).

The agreement is expected to lead to an immediate recognition of revenue and cash flow of USD 90mn in addition to c4% of annual recurring revenue for Telecom Egypt over the lifetime of the cable systems (min. of 15 years).